kylie made $20 in interest by placing $1,000 in a savings account with simple interest for 3 months. what…

kylie made $20 in interest by placing $1,000 in a savings account with simple interest for 3 months. what was the interest rate? use the formula i = prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

kylie made $20 in interest by placing $1,000 in a savings account with simple interest for 3 months. what was the interest rate? use the formula i = prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

Answer

Explanation:

Step1: Identify values of i, p and t

$i = 20$, $p=1000$, $t=\frac{3}{12}= 0.25$ (since 3 months is $\frac{3}{12}$ years)

Step2: Rearrange the formula $i = prt$ to solve for r

$r=\frac{i}{pt}$

Step3: Substitute values into the formula for r

$r=\frac{20}{1000\times0.25}=\frac{20}{250}=0.08$

Answer:

0.08